Fund Evaluator:
Franklin High Yield Tax Free Inc C (FHYIX)
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Fund Details
Franklin High Yield Tax Free Inc C Overview
Franklin High Yield Tax Free Inc C (FHYIX) is an actively managed Municipal Bond High Yield Muni fund. Franklin Templeton Investments launched the fund in 1995.
The investment seeks to provide investors with a high current yield exempt from federal income taxes; its secondary goal is capital appreciation to the extent possible and consistent with the fund's principal investment goal. The fund invests at least 80% of its net assets in securities whose interest is free from federal income taxes, including the federal alternative minimum tax. It may invest in municipal securities rated in any rating category, including defaulted securities.
About Franklin High Yield Tax Free Inc C (FHYIX)
There are 5 members of the management team with an average tenure of 10.37 years: Daniel Workman (2009), Garrett Hamilton (2024), Ben Barber (2020), Francisco Rivera (2004), James Conn (2020). Management tenure is more important for actively managed funds than passive index funds.
The fund has 1 primary benchmark: Bloomberg Municipal TR USD index with a weighting of 100%. Franklin High Yield Tax Free Inc C has 1834 securities in its portfolio. The top 10 holdings constitute 13.3% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Franklin High Yield Tax Free Inc C is part of the Fixed Income global asset class and is within the Municipal Bond fund group. Franklin High Yield Tax Free Inc C has 5.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 99.2% (94.0% domestic bond, 5.2% foreign bond and 0.0% convertible bond). Franklin High Yield Tax Free Inc C has 0.8% of the portfolio in cash.
Assets Under Management
The fund has $87 million in total assets, which is below the $803 million average for the High Yield Muni category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
FHYIX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Franklin High Yield Tax Free Inc C expense ratio is high compared to funds in the High Yield Muni category. Franklin High Yield Tax Free Inc C has an expense ratio of 1.20%, which is 23% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Franklin High Yield Tax Free Inc C has a portfolio turnover rate of 12%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 51% for the High Yield Muni category.
Recently, in the month of July 2026, Franklin High Yield Tax Free Inc C returned -2.1%, which earned it a grade of F, as the High Yield Muni category had an average return of -1.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Franklin High Yield Tax Free Inc C has a trailing yield of 4.04%, which is below the 4.46% category average. The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Franklin High Yield Tax Free Inc C Grades
Year to date, the fund has returned 1.3%, 0.2 percentage points worse than the category, which translates into a grade of D. The fund has returned 7.1% over the past year (grade of C), 4.4% over the past three years (grade of C) and -0.1% per year over the past five years (grade of D) and 1.6% per year over the past 10 years (grade of F).
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FHYIX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| FHYIX Return (NAV) | -2.1% | -0.2% | 7.1% | 4.4% | -0.1% | 1.6% |
| FHYIX Grade | F | F | C | C | D | F |
| +/- Category | -0.3% | -0.3% | 0.2% | 0.3% | -0.3% | -0.9% |
| High Yield Muni Avg | -1.8% | 0.1% | 6.9% | 4.1% | 0.3% | 2.5% |
| FHYIX Tax Cost Ratio | na | na | 0.0% | 0.0% | 0.0% | 0.0% |
FHYIX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FHYIX Return (NAV) | 1.3% | 3.5% | 5.7% | 5.7% | -14.5% | 4.2% | 5.2% | 7.1% | 1.4% | 3.1% | 0.6% |
| FHYIX Grade | D | B | B | D | D | F | A | F | C | F | D |
| +/- Category | -0.2% | 1.0% | 0.5% | -1.1% | -1.3% | -1.3% | 1.3% | -2.2% | -0.6% | -4.8% | -1.0% |
| High Yield Muni Avg | 1.5% | 2.5% | 5.2% | 6.8% | -13.1% | 5.5% | 3.8% | 9.2% | 2.0% | 8.0% | 1.5% |
| Risk Measures | |
| Standard Deviation: | 6.7% |
| Total Risk Index: | 0.55 - Below Average |
| Category Risk Index: | 1.03 - Average |
| Category Risk Grade: | C (54% Rank) |
| Beta: | 1.13 |
| R-Squared: | 93% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | na |
| Yield: | 4.0% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $4643 Mil |
| Fund Total Assets: | $ 88 Mil |
| Share Class Type: | C |
| Portfolio Turnover: | 12% |
Management Team
| Number of Managers: 5 | |||
| Longest Tenure: 21.6 years | |||
| Average Tenure: 10.4 years | |||
| Managers (Year): Rivera Francisco (2004), Workman Daniel (2009), Barber Ben (2020), Conn James (2020), Hamilton Garrett (2024) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 1834 |
| % in Top 10 Holdings: | 13.3% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 5.2% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 94.0% |
| Foreign Bond: | 5.2% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.8% |
Purchase Information
| Fund Family: | Franklin Templeton Investments |
| Phone Number: | 800-342-5236 |
| Website: | www.franklintempleton.com |
| Status: | Open |
| Inception Date: | May 1, 1995 |
| Min. Initial Purchase: | $1,000 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | No |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 1.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.65% |
Expenses and Fees | |
| Expense Ratio (%): | 1.20% ( Rating : High ) |
| Category Average Expense Ratio (%): | 0.98% |
| Share Class: | Franklin High Yield Tax Free Inc A1 |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
